Legal Question in Credit and Debt Law in Wisconsin

A credit report of short sale settlement for less than the total owed would violate the bankruptcy discharge injunction, since your personal obligation to pay was probably wiped out 5 yrs. ago your bankruptcy, so long as you did not reaffirm your mortgage. Reaffirmation, however, would have allowed full reporting of your credit performance on the loan, as if bankruptcy had never occurred. Either way, nothing would happen to them for this violation unless you hire an attorney to enforce it. In our legal system, the general rule is that no court orders get enforced, unless someone pays for the enforcement litigation. In criminal matters and certain civil matters, such as child support, the government gets involved in enforcement after the judgment, but in most other cases, orders can be freely ignored unless someone is willing to go back to court over them. So, the answer to your question "can they report anything. . ." is clearly yes, depending upon what you are willing to do about it if the report is illegal. A polite warning letter from a lawyer before the closing, would probably prevent any improper report from occurring, however.

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